xjo weekend zoomba lounge, page-128

The opinion of an aussie on Sky Business a few nights ago was that the US debt is such that it cannot be paid back, but the US will never default. The US is in a somewhat enviable position compared to Greece, etc. as the US can print money (Quantitative Easing) that other countries will buy. Hence, by returning their annual budget into a surplus, rather than a deficit each year, and continuing to print new money, the US can eventually return to a zero debt position. I suspect that default by smaller economies will be such that the stock market will dip, perhaps significantly, but recover. Default by a large economy, the US in particular, will be a major shock to the stock market with recovery taking a long long time. However, with the assumption that the US will never default ... what is there to worry about?

While I don't have a concrete understanding of global finances wrt Quantitative Easing and the IMF, etc., perhaps the big picture is not as bad as some may lead us to believe.